The Indian telecom sector is under huge stress and according to the latest news this
Industry had slumped up –to 40 % in 2016 because the telecom companies have cut
back on recruitment in order to conserve cash in the middle of a brutal war
with Reliance Jio Communication which shook the Telecom industry by providing
free 4G Internet and free voice calling with various services which have given
a tough competition to all telecom operators.
The Operators and recruiters are saying that this sector will continue to
be cautious regarding the recruitment of staff over the next 6 months to tackle
the financial crunch.
The telecom companies are using its existing employees to the maximum level
to do their core business. Whatever hiring are being done are in the marketing
and sales sector only that too on junior levels targeting towards generating
business and retaining subscribers, besides developing new business and
including digital payments.
According to experts even the increments for the year ending 31st
March 2017 are set to be lower than last year’s average of around 9 %.
Executive director of recruiting firm ABC Consultants has told that there
has been 30 to 40 per cent reduction in hiring in 2016 as compared to last year
and they are expecting that a similar trend for the next quarter also.
ABC Consultants recruit for all levels for the telecom sector and has seen
clients who are device makers and operators.
Telecom industry is the most volatile because there is huge pressure on
incumbents after the entry of Jio in the market and the stress created by Jio
will at-least continue till March because Mukesh Ambani recently announced that
the free 4G Internet and Voice calling services have been extended till 31st
March so it is a very difficult situation for other players to give any
competition to the current Jio offer.
It is also expected that the demonetisation will also eat up 5 to 7 per
cent revenue of the telecom industry so this time telecom industry is facing
major blow from two sources.
Obviously demonetisation has added challenges not just for the telecom industry
but for other industries also like smartphone makers and other tech device
making companies as the purchasing power is greatly affected by the demonetisation
and cashless situation.
Let us hope that the situation will soon become normal for all industries.
Please give your reviews on this article whether you like it or not
